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Assume the current interest rate on a 1-year Treasury bond (R4) is 6.50 percent, the current rate on a 2-year Treasury bond (R) is 7.25

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Assume the current interest rate on a 1-year Treasury bond (R4) is 6.50 percent, the current rate on a 2-year Treasury bond (R) is 7.25 percent, and the current rate on a 3-year Treasury bond (R3) is 8.50 percent. If the unbiased expectations theory of the term structure of interest rates is correct, what is the 1-year forward rate expected on Treasury bills during year 3, 3f,? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 6.50% R, R R 7.25% 8.50% Complete the following analysis. Do not hard code values in your calculations. Sheet1 B D EF G H 6.50% R, R R 7.25% 8.50% Complete the following analysis. Do not hard code values in your calculations. zf

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